The Impressive TimesNew Delhi, Feb,28,2025: The government has upheld the 8.25% interest rate on Employees’ Provident Fund (EPF) for the financial year 2024-25.
“The Central Board of Trustees (CBT), EPF, has proposed an annual interest rate of 8.25% to be credited to EPF accounts for the financial year 2024-25. The final notification will be issued by the Government of India, after which EPFO will transfer the interest to subscribers’ accounts,” the Ministry of Labour & Employment stated following the CBT meeting.
The meeting was presided over by Union Minister for Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya.
Compared to several other fixed-income options, the Employees’ Provident Fund (EPF) provides relatively stable and high returns, ensuring steady savings growth. The interest earned on EPF deposits remains tax-free up to a specified limit, making it an appealing investment choice for salaried employees. This move underscores strong confidence in EPFO’s investment portfolio and its capacity to deliver competitive returns to its members, the government said.
As part of its ongoing reforms, the CBT, under the leadership of Dr. Mandaviya, approved several key decisions during the meeting. A significant move includes the enhancement of insurance benefits under the Employees’ Deposit Linked Insurance (EDLI) scheme. After an actuarial assessment of the EDLI scheme, the Board endorsed critical amendments to strengthen financial security for members’ families, aiming to resolve major grievances and ensure a more inclusive approach to claim settlements.
Key Revisions in the EDLI Scheme:
Minimum Benefit for Early Service Deaths: A minimum life insurance payout of ₹50,000 will be provided if an EPF member passes away within the first year of service. This change is expected to enhance benefits for over 5,000 cases of service-related deaths annually.
Coverage for Deaths After Non-Contributory Periods: Previously, EDLI benefits were denied if a member passed away after a non-contributory period, considering it as death outside service. Now, if a member dies within six months of their last recorded contribution, they will be eligible for EDLI benefits, provided their name has not been officially removed from the rolls. This modification is estimated to benefit over 14,000 such cases annually.
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